PCA Accepts Stakeholders’ Call, Postpones Price Hike

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  •  The Panama Canal Authority (ACP) has announced that it will postpone price increases on canal transit fees which were due to come into effect tomorrow.
  • The announcement follows a joint letter sent by the ICS, ASA, and ECSA, expressing concerns over the speed of price increases that were expected to begin from 15 April 2021.
  • The proposed changes represent a minimum cost increase per transit reservation of US$20,000 (up 57%) and a maximum cost increase of US$58,500 (up 167%).
  • These price changes will now start on 1 June 2021.

An ICS Shipping news says that Panama Canal Authority (ACP) will postpone price increases on canal transit fees which were due to come into effect tomorrow.

Letter by major stakeholders

The letter, sent on 17 March 2021, expressed concerns over the “significant increase” of the fees and stated that the 15 April start-date given by the ACP was too short for the maritime industry and canal users to be able to adjust.

ACP has linked the increased fees to changing supply and demand conditions for the service it offers.

Panama Canal is one of the world’s busiest shipping routes; nearly 14,000 transits were made last year.

ACP announced the postponed date

On 13 April 2021, the ACP announced the postponed date for the new booking tariffs.

This change in the implementation date will provide the maritime industry more time to prepare for the adjustment to the new booking fees.

A relief to the shipping industry

This announcement comes as a relief to the shipping industry, that has been navigating the crew change crisis and other COVID-19 pandemic related disruptions.

The shipping industry commends the ACP’s decision and welcomes ongoing communication on issues central to preserving the global supply chain.

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Source: ICS Shipping

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